About the case

O What is obesity
About Burger King
V Fast food industry in U.S.
E Problem statement
Problem Causes
R Ethical Issues
Obesity and fast food industry
V Public outcry against fast food
I industry
Burger King : Image makeover
E Competitive advantage for
burger king
W Reuslts of the new strategy
Obesity was a major health crisis.
Fast food was treated as a health menance
comparable to tobacco and alcohol.
Allegation towards fast food chain for serving
unhealthy food.
Burger King sales began to decline.
Burger King intiated a slew of changes in its c
ampaign and menu to enter the health food
segment.
 What is Obesity?
Obesity is defined as a weight
higher than what is considered
healthy for a specific Height. It
can be measured by BMI and
waist circumference.
Type Subsidiary
Industry Restaurants
Predecessor Insta Burger king
Founder David Edgerton and James
Mclamore
No. of locations 15243
Products Hamburgers, chicken, French fries
Revenue $ 4.05 billion
Total assets $18.41 billion
No of employees 34248
Parent Restaurant Brands International
Operating Income $ 363 billion
 Fast Food Industry in U.S.

No of fast 160000 Frequency %

food
restaurants
Once per week 44%

No of 5000000 Twice 20%

Americans
served daily
Three or more 14%

Annual fast $ 11 million Seven 6%

food revenue

Never 28%
 Their primary Children upto 16
targets were families years of age were the
where both partners secondary targets
are working

Their marketing strategies

are directed towards the
low and middle class
people
 Problem Statement

Lawsuit
Company u.s
Fatty food against Market share
sales reached
products- burger king fell from
7.75 billion
Obesity and and 3 fast 18.5%
in 2003
low food giants ( in2001 to
down from
nutritional Mc donalds, 15.6% in
$10.3 in
value KFC and 2003
1998
Wendy)
Problem Causes
 Ethical Issues

Non Disclosure of Marketing efforts

Value Meal information towards young people

Availability of foods
Increase in portion
and beverages in Targeted children
size
schools
 “CENTRE FOR DISEASE CONTROL AND
PREVENTION” Found that obesity rate in U.S rising at an
alarming rate.

A study undertaken by them and revealed that:

Obese/ Overweight Calorie Intake
Category % Gender Total Calories
Women 1877(1542)
Adults 61%

Children 15% Men 2618 (2450)

US Food industry produced about 3800 calories a day
per person which is about 30% more what a man
needed and double women needed.
The studies showed that Americans has increased their
calorie and carbohydrates intake over the past 30 years.
Linking obesity to a no of health problems.
“Super Size Bags” and “ Value Meals” became popular.
 Law suit Filed

Filed suit against 4 Charge was fatty food

fast food were responsible for
companies the obesity

Allegation was The lawsuit claimed

irresponsible and that fast food chains
deceptive in posting the were negligent in
nutritional information selling food high in salt
Burger King Image Makeover

Objectives

Awareness
among
customers

To counter
the lawsuits
Changing
customer
preferences
 New Business strategy to enter into
healthy food category

Special Sandwiches
are available Promoted
menu items
In 2003 in different new
who are
enter into value meals sandwiches
conscious of
health “Flavour
their calorie Traditional
conscious from grilling
& Value meal
diners not from
carbohydrat Lite Comb fat”
e meal
Burger King was the first to emphasis
customized order with its “ Have it your Way”
Campaign
Interactive nutrition guide which provides
nutritional information that was not provided
by M.C. Donalds , Wendys or KFCs

Easy to follow information posters in its stores

Symbols on the poster guided customers on fat,

carbohydrates
In April
2004 Burger
“Have it
Compan In May King
your
y sales 2004 experien
way”
increase Store ced sales
help in
d by revenues growth
increasin
7.3% increase of 9%
g the
and d by post
revenue
Franchis 16% makeove
by 4.4%
e sales r
by 3.4%